White House meeting ends without deal

WASHINGTON (MarketWatch) — A meeting between President Barack Obama and congressional leaders ended Wednesday night with no deal to re-open the U.S. government.

House Speaker John Boehner told reporters that Obama repeated he wouldn’t negotiate about passing a funding bill. With the Senate gaveled out for the day, the stalemate continued and meant the government shutdown would continue for a third day on Thursday.

Reuters

U.S. President Barack Obama makes a statement to the press about the government shutdown in the briefing room of the White House in Washington, September 30, 2013. REUTERS/Larry Downing (UNITED STATES - Tags: POLITICS BUSINESS)

House Republicans have sent funding bills to the Senate that would at the same time delay or weaken Obama’s signature health-care law. Democrats reject changes to the law, commonly known as Obamacare.

“We had a nice conversation, a light conversation, but at some point we’ve got to allow the process that our Congress gave us to work out,” Boehner said. “All we’re asking for here is a discussion and fairness for the American people under Obamacare.”

Obama and the leaders met as much of the U.S. government was shut down for a second straight day. Thousands of workers have been furloughed; national parks are closed; and the IRS has suspended audits during the first shutdown in 17 years.

Meanwhile, the U.S. is creeping up against its debt limit. Treasury Secretary Jack Lew on Tuesday night reiterated that the government will lose the ability to borrow on Oct. 17.

In a CNBC interview that ran shortly before the meeting began, Obama seemed to suggest the market should have dropped by even more.

He said he was “exasperated” with negotiations and that Wall Street should be worried about the impasse over the budget and the U.S. debt ceiling.

“I think they should be concerned,” he told CNBC’s John Harwood, who noted Wall Street has been “calm” since the shutdown took effect early Tuesday morning.

Treasury prices gained on Tuesday, but came off their highs on news of the meeting between Obama and leaders. See Bond Report.

Obama was “very strong, strong, strong” in the meeting and made clear he wouldn’t stand for Republican demands over the health law, said Senate Majority Leader Harry Reid.

Some Republicans are showing increasing signs of unease with the government shutdown and are backing a so-called “clean” short-term budget bill to fund operations into the just-begun 2014 fiscal year. That is what Democrats have demanded from the start.

In an interview with MarketWatch, Republican Rep. Steve Womack of Arkansas said he wanted to get the current budget debate over with and move on to the debt ceiling.

“To me [the debt ceiling] is a much bigger issue for this Congress and I would like for that discussion to be going on right now,” he said.

The House on Wednesday approved bills to reopen national parks and museums, and fund the National Institutes of Health. But Democrats and the White House have rejected the approach of reopening the government piece by piece.

Business leaders are pressuring Washington to end the stalemates over government funding and the debt ceiling.

“There’s precedent for a government shutdown,” Lloyd Blankfein, the CEO of Goldman Sachs Group Inc.,
GS, -0.56%
told reporters after he and other executives met with Obama at the White House on Wednesday. “There’s no precedent for a default.

“We really haven’t seen this before and I’m not anxious to be part of the process that witnesses it,” he said.

Wednesday’s gathering at the White House was the first time all four congressional leaders have been in the same room to discuss the current impasse.

Also in the meeting were Senate Minority Leader Mitch McConnell of Kentucky and House Minority Leader Nancy Pelosi of California.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.